Business Studies Year 12 Topic 1 Flashcards
(23 cards)
- Role of Operations Syllabus
1.1 Strategic role of operations management - cost leadership, good/service differentiation
1.2 Goods and/or services in different industries
1.3 Interdependence with other key functions
- Influences Syllabus
2.1 Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulations, environmental sustainability
2.2 Corporate social responsibility
Difference between legal compliance and ethical responsibility
Environmental sustainability and social responsibility
- Operations Process
3.1 Inputs
Transformed resources (materials, information, customers)
Transforming resources (Human resources, facilities)
3.2 Transformation processes
The influence of volume, variety, variation in demand, visibility
Sequencing and scheduling - gantt charts, critical path analysis
Technology, task design and process layout
Monitoring, control and improvement
3.3 Outputs
Customer service
Warranties
- Operations Strategies
4.1 Performance objectives
What is operations
Operations refers to the business process that involves transformation or more generally production
Operations objectives
Cost
Customisation
Dependability
Speed
Flexibility
Quality
Cost leadership
Refers to striving to be lowest cost producer and the most price-competitive business in the marketplace
Good/service differentiation
Refers to modifying the product/s offered by the business so that they are unique and distinct from those offered by competitors in the market place
Interdependence
Refers to the mutual dependence/reliance that the key functions have on one another, this means that the various business functions work best when they work together
Globalisation
Refers to the removal of barriers of trade between nations and is characterised by increasing integration between national economies and a high degree of transfer of capital, labour, intellectual capital, technology and resources
Technology (influence)
Refers to the implementation of innovative devices, methods and machinery upon operations processes
Legal regulations
Refers to laws that have been passed by the government and that a business must comply with. Any expenses incurred for operations to comply with these laws are termed “compliance costs”
Environmental sustainability
Refers to ensuring that current resources and development does no impact the ability of future generations to meet their needs
Cost-based competition
Refers to an increase in competition in the market based on cost which has arisen as a result of globalisation
Quality expectation
Refers to the expectations of customers in relation to the quality, durability and benefits of Goods and Services
Corporate Social Responsibility (CSR)
Refers to open and accountable business actions that are ethical and demonstrate respect to society and environment
Inputs
The resources used in the transformation (production) process and include people, materials, or physical resources. They may be tangible (physical) or intangible (not physical)
Transformed resources
Are those inputs that are changed or converted in the operations process; they are transformed by the operations processes
Materials
The basic elements used in the production process and consist of two types; Raw materials (ingredients or components) and intermediate goods (semi-finished/processed which become an input for future transformations)
Human Resources
The people with the skills and knowledge required for operational function
Transformation Process
Involves the activities which combine the inputs, transformed and transforming resources to add value into outputs (goods or services)
Volume
The actual quantity of goods and service provided by operations
Variety
The number of different methods or versions offered. Normally, less variety is associated with mass production
